Key insights
- Warren Buffett emphasizes the importance of staying informed about competitors by reading their 10Ks and quarterly reports to be an intelligent business owner. While he specifically mentions wholly-owned businesses, the principle extends to partially-owned businesses as well. This highlights the value of comprehensive industry analysis for informed investment decisions, though practical limitations exist in industries with numerous competitors.
In an annual meeting Warren Buffet has said that he cannot be an intelligent owner of a business if he doesn't stay up to date on the competition and what the rest of the industry is doing.
"If I own all of a business, I want to be on the mailing list for the 10ks and quarterlies' of all their competitors". https://youtu.be/TsAxxD_4gIQ?si=OwsU2jYNhZAhxqZH
I think he is talking specifically about wholly owned businesses, but would this not apply to partially owned businesses as well? Also, in some industries you might have dozens, possibly hundreds of competitors, how would it be possible to read the financial reports of all of them?